Close Menu
The Baylor Lariat
    Facebook X (Twitter) Instagram YouTube LinkedIn
    Trending
    • Review: Doja Cat takes on new form in ‘Vie’
    • The cost of fame is too high for fans to bear
    • A&L Tunesday: Sept. 30
    • It’s OK to not be the smartest person in the room
    • Puppet show comes to Mayborn at weekly Mini Monday Story Time
    • Mayborn Museum celebrates Hispanic Heritage Month through ‘Ofrenda’
    • Walking tour takes Hispanic history to the streets
    • Baylor New Play Initiative showcases new voices in theatre
    • About us
      • Fall 2025 Staff Page
      • Copyright Information
    • Contact
      • Contact Information
      • Letters to the Editor
      • Subscribe to The Morning Buzz
      • Department of Student Media
    • Employment
    • PDF Archives
    • RSS Feeds
    Facebook X (Twitter) Instagram YouTube LinkedIn
    The Baylor LariatThe Baylor Lariat
    Subscribe to the Morning Buzz
    Tuesday, September 30
    • News
      • State and National News
        • State
        • National
      • Politics
        • 2025 Inauguration Page
        • Election Page
      • Homecoming Page
      • Baylor News
      • Waco Updates
      • Campus and Waco Crime
    • Arts & Life
      • Wedding Edition 2025
      • What to Do in Waco
      • Campus Culture
      • Indy and Belle
      • Sing 2025
      • Leisure and Travel
        • Leisure
        • Travel
          • Baylor in Ireland
      • Student Spotlight
      • Local Scene
        • Small Businesses
        • Social Media
      • Arts and Entertainment
        • Art
        • Fashion
        • Food
        • Literature
        • Music
        • Film and Television
    • Opinion
      • Editorials
      • Points of View
      • Lariat Letters
    • Sports
      • March Madness 2025
      • Football
      • Basketball
        • Men’s Basketball
        • Women’s Basketball
      • Soccer
      • Baseball
      • Softball
      • Volleyball
      • Equestrian
      • Cross Country and Track & Field
      • Acrobatics & Tumbling
      • Tennis
      • Golf
      • Pro Sports
      • Sports Takes
      • Club Sports
    • Lariat TV News
    • Multimedia
      • Video Features
      • Podcasts
        • Don’t Feed the Bears
      • Slideshows
    • Advertising
    The Baylor Lariat
    Home»Opinion»Editorials

    Editorial: Microfinance has macro-potential

    webmasterBy webmasterFebruary 20, 2015 Editorials No Comments3 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Charity

    Poverty is a global epidemic. According to the most recent World Bank estimates, 17 percent of people in the developing world live on less than $1.25 a day, which adds up to over a billion people.

    Economic theory often brings into question whether charity works. It can be considered a short-term solution to long-term issues. This is especially true in the developing world, where individual contributions oftentimes fail to make a sustainable economic impact.

    For most small businesses to succeed, they need the ability to take on credit. However, in developing countries, most multinational banks are unwilling to give small loans to encourage small business growth, as the risk outweighs the minimal financial reward for banks.

    However, encouraging microfinance and microcredit is one of the best ways that people in the developed world can advance those in the developing.
    To quote microcredit giant Kiva: “Microfinance is a general term to describe financial services to low-income individuals or to those who do not have access to typical banking services.”

    In practice, microfinance is investing in the productivity of individuals rather than being bound by the financial. Contrary to many other forms of foreign investment, microfinance provides the ability to be held accountable for funding instead of simply receiving money.

    People can use money for whatever reason they propose; it could be anything from investment in a business to home improvement. However, the idea is that they are able to better their situation and eventually repay the loan with a small interest.

    Perhaps the most legitimate complaint of the program is that you could create a debt bubble in already destabilized areas. However, this is where the charity portion of microfinance comes into play. Rather than destroying the economic future of a disadvantaged person, the debt can simply hurt their ability to borrow again.

    In addition, when investing in these programs, take a hard look at business plans and true profitability of an endeavor in a given area is vital to ensuring the optimal situation for success. While selling trinkets may seem like a good idea on the surface, don’t underestimate the level of economic development in a given area.

    As with any form of charity, there does need to be an understanding that money does sometimes get wasted and there will be individuals who run away with the funds. However, don’t be turned off from a beneficial idea by the minority.

    Baylor has a wonderful tradition of charity to the needy, but there is question about how successful simply giving basic supplies is to attacking the root of issues.

    However, acclimating people to the global economic condition is not only a way to invest in the present, but create adults who can teach their children about how to succeed in the future.

    That’s something the entire global market can get behind.

    Charity editorial microfinance Poverty World Bank
    webmaster

    Keep Reading

    The cost of fame is too high for fans to bear

    It’s OK to not be the smartest person in the room

    Baylor New Play Initiative showcases new voices in theatre

    Turnpike trouble: Bears survive Cowboys in Stillwater

    Pumpkins, petting zoos, memories await at Robinson Family Farm

    SLC hosts ‘golden birthday’ party, commemorates 26 years at Baylor

    Add A Comment

    Comments are closed.

    Recent Posts
    • Review: Doja Cat takes on new form in ‘Vie’ September 30, 2025
    • The cost of fame is too high for fans to bear September 29, 2025
    About

    The award-winning student newspaper of Baylor University since 1900.

    Articles, photos, and other works by staff of The Baylor Lariat are Copyright © Baylor® University. All rights reserved.

    Subscribe to the Morning Buzz

    Get the latest Lariat News by just Clicking Subscribe!

    Follow the Live Coverage
    Tweets by @bulariat

    Facebook X (Twitter) Instagram YouTube LinkedIn
    • Featured
    • News
    • Sports
    • Opinion
    • Arts and Life
    © 2025 ThemeSphere. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.